Remove Dilution Remove Revenue Remove Sales Remove Syndication
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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Flexible VC 101: Equity Meets Revenue Share. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad. Flexible VC: Revenue -based. Of the Inc.

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What Is Venture Debt and How Should Startups Use It?

View from Seed

In many instances, you raise an institutional round to either fulfill a product strategy or go-to-market strategy or you’re increasing sales and marketing hires, so you have better visibility into what needs to happen in the next six, 12, 18 months. Traction and revenue? NVV: Is there any dilution? Business model?

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A VC’s take on the Season 5 premier of Sharktank

Lightspeed Venture Partners

Despite having over 500k downloads and making $450k in revenue over the last 21 months, he had only $185k left in the bank, which meant that he would be out of business in 90 days if he didn’t raise more money. pre money valuation seems big, the actual implication is only between 5% and 10% dilution since the round size is small.

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Time is the Enemy of All Deals

Both Sides of the Table

We were trying to optimize around a few criteria: price, size of round, number of syndicate partners and, of course, terms. But we weren’t optimizing for dilution – we were building a $1 billion+ company and we wanted the runway to succeed. VC, sales, biz dev, M&A or otherwise. VC, sales, biz dev, M&A or otherwise.

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How to Fund a Startup

www.paulgraham.com

There never has to be atime when you have no revenues. Some angel investors join together in syndicates. Whatkind of anti-dilution protection do they want? For example, VCs generally write it into the deal thatin any sale, they get their investment back first. Startups valuations aresupposed to rise over time.